German auto giant Volkswagen Group on Monday said that it has received all the necessary regulatory approvals to merge its three entities in the country into one single business unit to be known as Skoda Auto Volkswagen India.
The merger of three car companies here is a part of its India 2.0 project which aims at strengthening its presence in the domestic market, which currently is negligible.
Gurpratap Boparai will head the merged entity as the managing director and the new company will be based in Pune with two manufacturing units in Pune and Aurangabad. Boparai was as the managing director of Volkswagen India.
The regulatory approvals were for the merger of Volkswagen India, Volkswagen Group Sales India and Skoda Auto India, and the merged entity will be known as Skoda Auto Volkswagen India, the companies said in a statement.
The merger will help the group get better efficiencies and synergies, the statement claimed.
"This merger creates one of the key prerequisites for working together more efficiently at all levels and achieving our long-term goal of gaining market share for both Volkswagen and Skoda by 2025," said Bernhard Maier, global chief executive of Skoda Auto.
Under the Rs 8,000-crore India 2.0 project, the group has set a target of capturing 5 per cent volume share by 2025, up from the under 2 per cent now with India-specific products. "We will now proceed in a series of quick steps, as early as next year, we will be presenting a specific outlook for our India 2.0 model portfolio at the next Auto Expo," Maier added.
A mid-size SUV model will be the first product to be rolled out under the merged entity. It will be available from both Skoda and VW, the company said.
The merged entity will have a strong brand portfolio- Skoda Auto, Volkswagen, Audi, Porsche and Lamborghini. Even after the merger, these brands shall retain their distinctive identities, dealer networks, but will have a shared vision and common strategy.
